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Today is 22nd may and we bring you great insights from multiple concalls for Q4FY25 and an interesting insights on an industry that is the need of the hour
Kalyan Jewellers
Growth in FY26 for the company
“So, for growth, you know that we are opening 90 Kalyan showrooms out of which what 80 plus will be in India and we have opened 76, 77 showrooms in the last financial year. That revenue, we are not, it is not a full revenue which has been absorbed in the last financial year. That revenue should also come. SSGs, of course, in the last financial year, SSGs were extremely strong. Even if you, for a budget's sake, if you reduce SSG a bit than last year, overall revenue growth should be what, it should be good. I am sure that you will be able to assess the overall revenue growth.”
-Mr Ramesh Kalyanaraman - executive director
What kind of SSSG company can achieve
“Yes. So, we actually -- we don’t look at only volume because we look at value because we ourselves push for studded rather than gold. So gold volume will surely come down even if the gold price is flat and even if there is SSG, the volume would not have grown as much as SSG because we ourselves would have pushed for studded Okay. So, our SSGs were in the range of 21%. “-Mr ramesh kalyanaraman - executive director
Target for the studded ratio for next year
Now. I think it should be in the range -- in the same range, in the in the 30%, 31%, 32% range because the expansion now for the next -- the running financial year is predominantly in Tier 2, Tier 3 markets outside South India where it will be -- the studded ratio will be lesser than what we enjoy in a metro or a Tier 1. So now don't expect any sharp increase from the current level.
-Mr ramesh kalyanaraman - executive director
Eicher Motors
Raw material cost is moving up
“So basically we are saying versus last quarter we are talking about the 30 bps on account of model and variant mix, which is a really higher share of some of the models, like Battalion Black where we are seeing very good traction and growth in terms of absolute sales. I think if you take back, I think the big message that we kind of talked about several quarters now, including last quarter is that our focus is on absolute growth and absolute gross profit growth, not necessarily on percentages.”
“So I think as part of that as far as both the new Classic as well as the new Battalion Black, we have made a lot of additions to the product in terms of features etc., and we have effectively kept, while we shared the cost, we have not changed it on a percentage basis. So I think about 30 bps is accounted for in the model and variant mix.”
Vidhya Srinivasan - chief financial officer
Outlook for FY '26 in the domestic Royal Enfield, exports Royal Enfield as well as the VECV businesses.
“Let me just close on the two-wheeler, then Vinod will talk about VECV. Financial Year ‘25 has been good for us in the growth. We have crossed 1 million motorcycles, which is in the history of Royal Enfield and a company which was almost about a decade back was looking at only about 100,000 motorcycles in one year.
We have crossed 1 million. We grew the market and the growth primarily came from the focus of delivering the pure motorcycling experience to the customers with the motorcycles, which are very differentiated and look wise and fit and feel wise, it has to be very differentiated and that is what we have been consistently working on, which has really helped us to grow the market where we are almost about 88% market share in the middleweight and our focus is also continued to be in the middleweight and that is where more and more product we launched and we will continue to have products coming up, refreshes coming up even in the year.”
ADF Foods
What is happening in ‘Ashoka’ , ‘Soul’ brand and what are the strategies to achieve 1000 cr target
So the Ashoka brand continues to remain our flagship brand. The brand has grown in high teens across all other markets. US for us, for the Ashoka brand has been the main market. So it's at a very high base. And this year, we saw a flat growth of Ashoka in the US market.There are a few reasons for that. There are certain changes which we have now made in our sales team, in our distribution structure, and we feel confident that the brand will be backed up to the mid-teens in the US for this current financial year. And as far as the Soul brand goes, the Indian market has -- I mean, we've had a very good response with the brand. And we've just recently in February of this year, launched some frozen products as well in the Indian market in some select modern trade stores.
We feel this market will need some more time for getting us to the INR100 crores. So in the next 3 years, our guidance for this brand will be anywhere between INR50 crores to INR75 crores as we feel the Indian market will still take time. And our focus in the Indian market is going to be, again, only on e-commerce, quick commerce and modern trade. And modern trade also, we will do it cautiously in select cities and expand over the next 3 years.
To get to the INR 1,000 crores, again, our flagship brand, Ashoka, will play a very important part. The Truly Indian brand will continue to grow. Our B2B and private label business will again be important for that. And of course, the distribution and other businesses. We are looking at mainstream helping us grow much faster.
-Bimal thakkar - Chariman and managing director
South Indian Bank
How will the ROA and Advances growth trend in FY26
So with respect to the last year when we were asked this question, we told people that we would be at the 10% level and we ended up at that level. We think that our growth, we will be growing faster than last year. The environment is an important imponderable that we are not entirely sure as to how it is going to behave.But I think that, 20%-30%, maybe 40% increase in our growth rate is feasible, and we now have the tools to get there. So I would say that we would be north of 12% growth assets for the year. Our hope would be that we beat that number by 3 or 4 percentage points. But as of now, we are targeting north of 12%. But with the change in the asset mix, the growth coming largely from MSME and retail and other such asset categories.
-P. R. Seshadri
IXIGO
Acceleration of growth
We are witnessing a clear and accelerating growth trend of premiumization in Indian travel, a shift driven by rising purchasing power and innovations that are delivering better value at lower cost to the customers.
Destinations once considered aspirational, such as Goa, are being substituted at times by international travel places such as Vietnam, Thailand, Dubai, Abu Dhabi and Singapore. Domestically, too, there's a strong surge in spiritual travel destinations like Prayagraj and Ayodhya, reflecting both evolving aspirations and deeper cultural exploration.
-Mr. Rajnish Kumar, Director and Group Co-CEO
What can win train vs flight bookings
And when I talk about that, of course,the train is at the forefront of it. But even today, when I talk about flights and when we see the growth coming there, a large part of that growth is being driven by product-led growth, right, because we have launched these new things like Flight Tracker Pro or helping people get their boarding pass directly, at the time we have check-in opens. All those kind of things are essentially helping build more word of mouth and get more new users on the platform. Now, one could ask why nobody else did it because everybody has been in the same market for the same time as us.
But I think it's really a question of where you place your focus and bets. And for us, we spend disproportionate time worrying about the smallest of things that our users struggle with. And I think that's really our moat, right? And of course, one can argue that, of course, we have network effects now. There's a lot of data that we have, which is proprietary, which is hard for anybody to copy, and all those things are there.
But if you go back even one more step before that, how did we get there, by understanding customer problems more deeply than anybody else, right? And I think that's a harder playbook to copy, because it takes a while to build some of those things or scale some of those things or prove them.
-Mr. Aloke Bajpai, Chairman, Managing Director and Group CEO
Fortis Healthcare
Operating leverage to kick in
Yes, we are aiming around 70%, 71% occupancy level at the consol -- overall level because this brownfield expansion is on the existing facility and these hospitals anyway operating at 50% type of occupancy level. So I think we will not be facing any challenge in occupancy side. And plus the Manesar facility, as Dr. Raghuvanshi alluded, it is ramping quite well.
-Vivek Goyal
Brownfield to take at least 6 months time to get to break even
So since these are brownfield, absorption is pretty fast. Location to location, it will differ. However, we expect that we will open beds as the occupancy levels go up. Currently, these hospitals are operating about 75% to 80% occupancy levels. So we expect that this should happen in 6 months' time.
-Ashutosh Raghuvanshi
Arvind Smart Spaces
The growth pipeline is pretty strong
We know that we should have done a little better on fresh sales if we had not missed our couple of launches, which have shifted into the coming quarters, this and the next one. That means that there will be some pent-up happening in the coming quarters and for this year as a whole. If we had launched these couple of things which are generally delayed on account of approvals, last year, we would have easily met our general impression of achieving something like 25% to 30% growth in the fresh sales, and that's what we have been achieving consistently the last several years. Now I mean, obviously, the BD pipeline, acquisition pipeline, et cetera, is pretty healthy. This pent-up will happen. And hence, we think that in a block of 2 to 3 years, we can count from previous year or this year or whatever way, we should be able to achieve and continue to achieve 25% growth put together between the 2 years as such. - Kamal Sham Singal:So around INR 1,200 crores are coming from what is already signed and done, which are under approval and around INR 700 crores to INR 800 crores are coming from new projects and the pipeline we are creating right now. So all in all, yes, this will be INR 2,000 crores in total put together between what is already done and what is about to happen.
— Kamal Sham Singal
AB Capital
Corporate-structure overhaul
“We have successfully completed the amalgamation of Aditya Birla Finance with Aditya Birla Capital… This marks a significant step in our transformative growth journey, increasing our strength and agility as a unified larger operating entity.”
Aggressive three-year growth target for the NBFC
“Going forward, we remain confident of growing the overall portfolio by CAGR of 25% over the next three years. Further, we expect the RoA to expand gradually mainly driven by expansion in margins, improvement in productivity and the change in the product mix.”... “Our aim is to achieve an RoA of 2.0%–2.2% in the next eight to ten quarters.”
— Vishakha Mulye
PI Industries
Becoming a life science powerhouse
"We actually positioning ourselves to capture across the value chain of the multi-billion dollar market of pharmaceuticals in the CRDMO and electronic and biologicals. It is well in line with the transformation to a life science company"
"We are transforming to life science powerhouse and aiming to become a global technology platform leader in biological space while become a differentiated player in the CDMO pharma play"
— Mayank Singhal, MD
Focus on New Growth Verticals (Pharma & Biologicals)
"allocating additional capital towards our future growth engines in PHS our farmer business and PHC a global biological franchise"...."has experience as the fastest growth rate in the recent times outbeating the industry acquisition of plant healthcare. But this has a specialization in peptides marked a significant step towards our intent of becoming a platform technology based product solutions and biologicals to serve the global markets"
— Mr. Sanjay Agarwal, CFO
Tilaknagar Industries
Return to Strong Growth Trajectory
"After a subdued first nine months of the financial year due to industry-wide disruptions in some of our key states, I am happy to share that we are back to our industry-beating growth trajectory on the back of stable and progressive excise policy changes, as well as our new product launches."
"The volume growth has been 20%, and we expect to maintain this momentum going forward into this current financial year."
— Ameya Deshpande
Stabilisation and Market Share Gains in Andhra Pradesh
"The route-to-market change in our largest state of Andhra Pradesh is now firmly behind us and has stabilized. Not only have we seen our market share inch back to earlier levels, but rather over the past 3-4 months have seen them expand."
"We mentioned earlier on this call that more than 30% growth in Q4 on a YoY basis. Obviously, there has been good growth that we have seen in the state."
— Ameya Deshpande
Defence Sector - What is the future post the India-Pak War
Bharat Electronics Limited
Confidence in the performance of BEL systems in recent geopolitical situations is expected to boost future orders, both domestically and for export
"Overall, we feel satisfied that, yes, a technology developed by us was used by our user in a very, very efficient way. We got a lot of appreciation from our users presently."
"First time, it has been used in a war- like situation. So, practically how it is used, that gives us much more confidence and our users also much more confidence on this complex technological solution, which we have made for them. That perception of them will not only improve our order book from Indian users, but definitely, it will help us to export some of these solutions or variants of this solution to various countries worldwide."
“The counter-drone system, specifically mentioned as having both hard and soft kill features, proved effective in recent operations and is expected to receive repeat orders. "Recently, one more order from the Army we have got a few days back. And we are hoping to get some more repeat orders for this because it has proved its efficacy in the field conditions and the user is happy."Substantial long-term investments in capital expenditure and R&D are planned to support this projected growth
"And next to subsequent years, we have a really good growth plan. I can assure you, it will be more than INR 1,000 crores per year, we are going to invest.".... "We are having plans out for making new factories at important locations in India, which will be – some of them will be even bigger than our present establishments.... we are planning to have bigger than these two units, more units in future." …. "So, this year itself, I think, we are investing in R&D manpower alone around 700 to 1,000 engineers, so that we can take up much more challenging and big programs."
Zen technologies
New age war equipment
Recent operational use of their equipment proved its effectiveness, serving as significant validation and marketing. This has led to a perceived increase in the sense of urgency within the government for procuring such "new age war equipment". Management identified the potential need for anti-drone systems early on, when others were focused solely on drones. They made a deliberate decision to concentrate their R&D efforts in this area, which they now see as having paid off significantly.
Future product mix for the company
Management projects a significant shift in their business mix over the next 5-10 years, with the majority of revenue expected to come from the drone ecosystem (anti-drones, drones, hard kill) rather than traditional training and simulation. Rather than aiming to cover all defence areas, Zen Technologies focuses on specific, high-impact technologies that they believe are critical to determining the outcome of future conflicts.
Conclusion
From Kalyan Jewellers' expansion into Tier 2 and 3 markets to Zen Technologies' focus on 'new age war equipment', today's insights paint a vibrant picture of a dynamic market. We've explored ambitious growth targets, strategic shifts, and the ever-evolving needs of consumers. It's clear that companies are not just reacting to the present but actively shaping the future.
As we close today's edition of Investors' Edge, one question lingers: what will tomorrow bring? With these companies laying such robust foundations, the coming quarters promise to be an exciting ride for investors and market watchers alike. Stay tuned as we continue to dissect the trends, uncover the opportunities, and keep you at the forefront of the business landscape.
Thank you brother IshMohit, we expect a lot of this kind of stuff from you daily
Thankyou team SOIC :)